Hey buyers! Are you wondering if you need a REALTOR® for new construction? The answer is most definitely YES!
Buying a home is exciting! It’s even more fun when you get to watch as it is built – pick out the flooring, choose your favorite lighting, and decide what colors you want on the walls! Keep in mind, however, this is still a major purchase. The process of buying a home can be very complicated as well. There is much room for errors if there is not a trained professional overseeing all of the X’s and O’s. You want to make sure all is done correctly and with your best interests in mind.
The person you will likely meet on site when touring new construction is an agent representing the builder. This person is a great way for you to get all of the information you need on the new development. Keep in mind, though, that they have signed a contract with the builder (a.k.a. the seller) of the property. Why, then, would you not want someone working on your side?
As you enter an agreement with an agent, they become obligated to work on your behalf. This is their fiduciary responsibility. So using an agent that already has interest in the seller just doesn’t seem to be the best deal for you. Yes, it is possible for agents to represent both sides of the transaction and enter what is called dual agency. However, this becomes a tricky situation. With dual agency, the real estate agent is working with the seller who wants to get the most money possible out of the property, while also working with the buyer that wants to spend as little as possible on the same property. What you need is a buyer’s agent.
“REALTORS® are trusted resources for real estate information and can help home buyers navigate the increasingly complex home-buying process,” said National Association of Realtors® President Gary Thomas. “The buyer agency agreement ensures the buyer that his or her REALTOR® will represent the interests of the buyer alone and not the seller.”
It may seem that having a buyer’s agent would cost you more money than just using the agent that is already involved in the sale of the property. This is a myth. The commission of the sale is the same whether one or two agents are involved. The difference in commission for bringing in an agent on your behalf will only effect how the commission is divided, not how much commission is paid out. Furthermore, the commission most often comes out of the seller’s pocket instead of the buyer’s unless other arrangements are agreed upon between both parties. Consequently, the cost to you, the buyer, for having an agent representing you is actually FREE!
As always, the main key is finding a well trained agent. Not just anyone with a real estate license will do their best for you. The Selling Rocky Mountain Homes Team has a variety of well trained, educated agents that are just waiting to help you with your new home. Our clients best interest is our specialty. Call us today!
Sources: Realtor.com, Hankmillerteam.com